If you own a small business in Florida, you already know how important every dollar is. When clients or customers owe you money, it’s vital for the health of your company that they pay you. Regardless of the size of your enterprise, understanding your options concerning debt collection is an important aspect of business ownership.
Be careful how you handle debtors
Always avoid harassing the people who owe you money. There are legal implications for business owners who cross the line when dealing with their debtors. If you decide to call them yourself, make sure to never call more than once per day. Never, under any circumstances, should you make any threats or defame their character.
Work with a collection agency
Ultimately, your business is not a debt collection agency. Instead of tying up your time and resources chasing down people who owe you money, working with a debt collection firm allows you to focus on your business while professional debt collectors handle that aspect of it for you. Debt collection agencies will send letters to your debtors, each successive one escalating in intensity, while still operating within the law.
Offer to negotiate a settlement
Business litigation can be a lengthy and expensive process. Even if you manage to collect the money that you are entitled to, you may spend more on court costs and legal fees than you recover. Instead of taking the case to court, see if you can negotiate a settlement with the people who owe you money. This could recover a significant percentage of the debt without compromising your company’s public image or spending your resources on a legal battle.
If your debt collection process does escalate to a legal battle, you should contact a lawyer who is apprised of your state’s business laws. This attorney could help you recover the funds that you are owed and guide you through the process while keeping everything within the framework of the law.